CAN ENERGY-RELATED UNCERTAINTY SERVE AS A BAROMETER FOR CARBON PRICING?

• Authors: Su Chi Wei , Song Xin Yue , Qin Meng , Budría Santiago
• Languages of publication: EN

Abstracts

EN

This investigation examines the reciprocal connection between energy-related uncertainty (EUI) and carbon trading prices (CTP). Empirical results indicate that EUI can positively affect CTP. This positive impact confirms that high EUI prompts businesses to increase demand for carbon emissions permits to cope with energy market risks, ultimately driving up CTP. The intertemporal capital asset pricing framework explains the findings. Conversely, the relationship between EUI and CTP is beneficial and detrimental, demonstrating that ongoing carbon market development con-tributes to energy market stabilisation and lowers EUI. However, disputes over energy supply and demand can undermine this effect. Within sustainable development, these findings contribute to governments employing EUI to indicate the effectiveness of carbon pricing policies, thereby better ad-dressing energy market risks. Simultaneously, businesses can regard EUI as a signal to anticipate future carbon pricing changes and take corresponding risk management measures.

Keywords

EN

CARBON TRADING PRICE; ENERGY-RELATED UNCERTAINTY

• Publisher: Institute of Slovak and World Economics and Institute for Forecasting, Slovak Academy of Sciences
• Journal: Ekonomický časopis (Journal of Economics)
• Year: 2025
• Volume: 73
• Issue: 1-2
• Pages: 36 – 57

Contributors

author

Su Chi Wei

• Fuzhou University of International Studies and Trade, No. 28, Yuhuan Road, Shouzhan New District, Fuzhou 350202, China

• https://orcid.org/0000-0001-9722-8105

author

Song Xin Yue

• https://orcid.org/0009-0004-8767-467X

author

Qin Meng

• https://orcid.org/0009-0009-2863-3743

author

Budría Santiago

• https://orcid.org/0000-0001-5537-4059

Identifiers

DOI

https://doi.org/10.31577/ekoncas.2025.01-02.02